Limited partners who invested in recently closed private equity funds are looking to offload parts of their commitments in the secondaries market, in anticipation of a liquidity crunch, according to industry insiders.

Nicolas de Nazelle, managing partner at placement agent Triago, said he has had some investors asking to cut their commitments, sometimes in half, some of which have not even been called yet by general partners. “Investors are currently reviewing fund portfolios in terms of their capacity to address possible drawdowns. An effective way to reduce drawdown risk is to reduce overall commitments to recently closed funds with considerable amounts of uncalled capital. For these funds the pricing question is less relevant,” he said.